INTERNATIONAL INSTITUTE OF PLANNING &

MANAGEMENT,
NEW DELHI

SALES MANAGEMENT

COMPARATIVE SALES AND DISTRIBUTION

STRATEGY FOR TROPICANA AND REAL JUICE IN
NON METRO CITIES IN INDIA

Submitted by

NAME C. CHARAN KUMAR

BATCH PGP/FW/2008-10
SECTION F-3
PHONE NO. 09885354422, 99996000396
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CONTENTS

Abstract 1

Introduction 2

Industry Profile 4

Major Players 13

Real Juice 17

Tropicana 20

Distribution 27

Promotion 29

Conclusion 31

Recommendations 33

Bibliography 34

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ABSTRACT
The study taken up by the comparative analysis of Corporate sales and
distribution strategy for Tropicana and real juice in non metro cities in
India.
Salesmanship is an art of demonstrating the merits of the goods and
the service of an organization to make a permanent customer.
Salesmanship is the art of understanding, appreciating and influencing
other people for mutual benefit. salesmanship is an effort to convince
people to buy the goods with benefit to themselves and reasonable
profit to the seller.

Thus in totality I feel that these companies should review its sales and
distribution policy with much emphasis on making people aware about
the product and patching up the lacunae of distribution channel.

Therefore, the company wants to analyze the present market share of

Real Juice and analyze the reason for this particular market share of
itself and the competitor, so that, it can plan its future strategies. It
also wants to knows about the key reasons that prompt the customer
to make a purchase of packed fruit juice and Real Juice.

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INTRODUCTION

With attitude shifting towards health, hygiene and all things natural,

the fresh fruit juice market has suddenly gained ground. The challenge

now lies in making these juices part of daily household consumption.

Brand loyalty is diminishing as product differentiation is muted. It’s the

complete package that would clinch the deal for the respective

companies. A continuous stream of new corporate entrants, the

sudden health-conscious, natural fed Indian consumers are all

contributing towards bringing the juice industry to the fore. Much is

happening and more is due to happen in course of time. Any attempt

to ignore this industry and the activity involving it would be quite futile.

This project, therefore, attempts to delve into the many facets of this

industry – the industry at large, its major players and their respective

marketing strategies (remember, there is a struggle for existence and

the survival of the fittest: Darwin Theory), the analysis of the same and

of course, the consumers’ opinions. The project does not claim to be a

research product on the subject chosen, but its does pretend a humble

attempt at analysing the marketing environment as also the marketing

mix for the packed fresh juices industry.

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INDUSTRY PROFILE

In 1997, the Indian food market was placed at Rs. 2,75,000 crores,

three quarters of which was fresh food, 15% semiprocessed, and just a

tenth processed. In terms of volume, processed food accounts for just

2% of the total output. Today time pressured unitary families ensure

that the food-processing sector grows at a phenomenal rate. The

demand is ever increasing and the supply is constantly evolving new

Others
Clothing and 13%
footwear
10%

Rent, fuel & power Food & beverages

10% 54%

Transport &
Communication
13%

market players. In fact, the research study indicates that most of the

money flowing out of an individual’s purse is spent on food and

beverages.

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BREAK-UP OF PER CAPITA SPEND

Processed food being tokened as convenient and hygienic almost-

ready meals offer a lucrative market especially in the much growing

and talked about beverages sector. Beverages constitute all of cold

drinks like Coke & Pepsi, hot beverages like tea, coffee and milkfood

drinks, squashes and syrups, mineral water, tetrapack drinks. Share of

each being:

Softdrink
concentrates
Tetrapacks 1%
6%

Cold drinks
49%

Hot beverages
40%

Mineral w ater Squashes &

2% Syrups
2%

Hot beverages include tea, coffee and milkfood drinks

Even as the two soft drinks stalwarts – Coca-Cola and Pepsi – are

slugging it out, Rs. 400 crores tetrapack market is abuzz with activity.

Frooti, the pioneer in the tetrapack market of India began the trend for

fruit drinks. It continues to be the leader with Jumpin, Real and Onjus

following it.

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Rest
10%
Godrej Foods
20%

Parle Agro
70%

ParleAgro includes Frooti, Appy, Pingo

Godrej Foods constitutes Jumpin
Rest include Treetop, Volfruit, Onjus, Real etc.

Tetrapacks which account for 10% of the total Rs. 4000 crores drink

market have been growing at the rate of 20%. It is divided into three

segments viz., Fruit Drinks, Juices and Nectars. According to the

stipulations by the Government FPO Act, all products containing fruit

content less than 20% of total product should be branded as ‘fruit

drink’; in the case of oranges, the stipulation is upto 40% of the total

content to qualify as a ‘fruit drink’. Fruit content of more than 20% but

Others
13%

Orange
Mango
28%
59%

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less than 85% qualifies for the tag of ‘nectar’; in the case of oranges it

has to be more than 40% and less than 85%. And finally, to qualify for

the tag of ‘fruit juice’, the fruit content has to be more than 85%. Going

by this qualification, the bulk of the products in the market fall in the

‘fruit drink’ category, with a few in the ‘nectar’ range and still fewer in

the ‘fruit juice’ range. Apart from Parle Agro’s Frooti, Appy, Pingo,

Godrej Food’s Jumpin, Lipton India’s Treetop; popular brands such as

the Rasna range and Kissan squashes fall in the fruit drink category.

Pepsi’s Slice (mango), canned juice segment comprising of brands like

NAFED, Noga, Midland, Mohan Meakin’s God Coin and Druk qualify as

fruit nectars. However, ETLs Onjus (34% market share) and Dabur

India’s Real quality to be the major contenders in the fruit juice

market. The flavours as preferred are:

Others include Pineapple, Apple, Litchi, Guava & Mixed etc.

Fruit juices are not really an integral part of the typical Indian’s diet.

This thought curtailed a major opportunity in the beverages sector till

about a couple of years ago. New thinking dawned and suddenly a

fresh lease of life was granted to the beverages market, thanks to the

fruit juices.

Hence the project concentrates on fruit concentrates…

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Hard War of Soft Drinks

With the change in the lifestyle of people and modernization getting in

vogue, Nepali market place has became a battlefield for various

beverage brands. As the weather now is hot and humid, the war seems

to be more intense among soft drinks.

For the last one year or so, Pepsi has been very aggressive. Pepsi’s

bottling company here installed pet bottle plant early February 2000

investing one hundred million rupees for it and introduced some of its

brands in 1.5 liter and 500 ml pet bottles. Then it introduced 200 ml

Phuchhe Pepsi at the right time and the product is doing well in the

market. As a result, its earlier market share of 18 percent has gone up

by another 4 percentage points to some 22%. Phuchhe Pepsi has also

helped in expansion of the market volume of soft drinks.

Till few months ago, ‘Frooti’ was enjoying the advantage of being the

only fruit drink in the market without any competitor. Now with the

entry of ‘Rio’ from Gold Beverages (P) Ltd. of Chaudhary Group, ‘Real’

from Dabur Nepal and ‘Frujo’ from Raybot Beverages, ‘Frooti’ from

Dugar Beverages (P) Ltd. has lost its past privilege. Only recently,

‘Pran’ brand of orange juice has been launched by importing it from

Bangladesh. Therefore, now Dugar Beverages started providing two

extra packs of Frooti on the purchase of every tray. The company has

also started to provide credit to its wholesalers and retailers, which

was unimaginable till the recent past. And it has changed its slogan

which says "Juice up your life" from the earlier "Mango Frooti, Fresh ‘n

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Juicy". It had also changed Frooti’s old TV commercial which had been

on air since last one decade or so. TV viewers bored of watching the

same commercial year after year have felt some change.

As a result of the new developments, companies are working hard to

gain more market share, be it through advertising, merchandizing or

consumer schemes. Dabur Nepal has reduced the price of its ‘Real’

juice from Rs. 19 to Rs. 14 to make it more competitive. Though it is

still one rupee higher than Frujo, two rupees higher than Frooti and

Rio, and three rupees higher than ‘Slice’ of Pepsi, Real has 50 ml more

than all the competing brands except Frujo. The company has said that

the reduced price offer is only for Real Orange Juice and is valid only till

the stocks last.

The fruit drink market in Nepal is highly segmented quality-wise as well

as market-wise. But general consumers are seen to regard them all as

equal in quality. Quality-wise consumers can get essence based so

called fruit drinks like Popayee at Rs. 6 or even lower as well as other

brands for as high as Rs. 45 for 250 ml. Claimed to be the only

carbonated soft drink with fruit juice flavour in Nepal, Frujo has one

other advantage over all other brands, i.e. it is packed in a ‘see

through’ pet bottle. Rest of the fruit drinks are in Tetra Pack except

Pepsi’s ‘Slice’, which is in glass bottle and is not carbonated.

Content-wise too these fruit drink brands have a lot of differences.

Most of them are mango-based. But, Dabur’s ‘Real’ is in orange and

pineapple. It is also said to be 100% pure juice (40% pulp content) with

no preservatives added. Other fruit drinks like Slice, Frooti and Rio are

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said to be nectar based (see box for required contents of different

categories of beverages). "These brands are synthetic drinks, not real

juice as Real", says T.K. Gupta, General Manager of Dabur Nepal. But

most of the general consumers do not know or don’t care to know

about the contents. They regard all these brands to be real fruit juice.

The fruit drink market has grown by almost 30% this year, according to

estimates by the companies. The growth is also there for carbonated

drinks as people, especially of the new generation, go for it. However,it

is estimated that carbonated drinks market is growing slower -

between 10 and 15 percent a year. "With the entry of Rio, the total

market for fruit drink has now tremendously gone up", says Manoj

Loya, General Manager of Gold Beverages (P) Ltd. of Chaudhary Group

that owns the brand. But the interesting thing is that after the Phuchhe

Pepsi was launched in the market it snatched away some of the market

of carbonated drinks (including that of its own big brother 300 ml.

Pepsi) and also that of fruit drinks like Frooti and Rio, though Real was

not so affected because of its premiumness. Phuchhe Pepsi has

become popular among school kids who otherwise used to have Frooti

and would have gone for other fruit drinks as well. "Almost 50% of such

school kids have shifted from fruit drinks to Phuchhe Pepsi", says a

fruit drink company executive in frustration. The reason is that

Phuchhe Pepsi is five rupees cheaper than other carbonated or fruit

drinks. This shows how Phuchhe Pepsi has helped to increase the

volume of carbonated drinks industry. Even those who had no habit of

consuming carbonated drinks have started to consume cola thanks to

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Phuchhe Pepsi. In small shops, instead of offering a cup of tea, which

generally costs five rupees, people now offer Phuchhe Pepsi to friends,

because it is only two rupees costlier and gives a better image.

In the race for catching a respectable market share of the growing soft

drink market of Nepal, there are imported soft drinks as well, which

range from different fruit juices to canned cola. The fruit drinks are

imported from as far away places as Philippines, USA, Singapore and

Thailand as well as from the nearby markets of India and more

recently, from Bangladesh. They are in Tetra Packs, in cans, in pet

bottles, and in plastic jars. In taste they are in mango, orange, apple,

tomato, mixed juices and in many flavours containing nectar, 15

percent to 40 percent fruit pulp or 100% natural juice. Though sales

volume of imported juices has no record at all, estimation shows that

about 20 MT of fruit juice (that includes imports in various packaging)

is sold in Nepal every year. That gives a market share of less than 1%.

Sales of canned cola and tonic water are more difficult to estimate as

these items are imported from many countries like China, Hong Kong,

Singapore etc. RNAC and Necon air also import these products for their

in-flight service.

Since Coke entered Nepal in 1979 it has been enjoying market

leadership in soft drink industry. Pepsi came to Nepal only in 1986.

Being a late entrant, Pepsi has been trailing far behind Coke. Pepsi

could have expanded its market share, but the bottling company of

Pepsi in Nepal had frequent changes in ownership and management.

Similarly, trying to take all responsibility for sales and distribution

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directly and lacking enough advertising and promotional campaigns,

initially the company could not attract more consumers to its brands.

Even some very successful promotional campaigns in past could not

sustain the increased demand because of limitation in production

capacity. In recent times the company seems to be more serious. Its

marketing has become more aggressive. But that is not going to be

enough as yet, since its rival is far stronger in many respects. For

example, Pepsi’s installed bottling capacity here is only 2,250,000

cases per year and that was achieved only after the commissioning of

the pet bottling line about six months ago. Of this capacity, the

company has been able to sell only about 1,200,000 cases a year

whereas Coke’s sales volume is estimated at over 4,300,000 cases a

year. Similarly, Pepsi has no production facility in the terai region, but

Coke does. Because of this the distribution cost of Pepsi is higher, and

quick response to increased demand in some market places is difficult.

Still, Pepsi has chances of high growth provided it strengthens its

distribution and sales and marketing team. This will further help

Nepal’s soft drink market to grow.

Market-wise, in Kathmandu valley one finds growth both in the

absolute quantities consumed and in the varieties available. But

outside the valley the situation is not so bright. On the one hand,

almost 50 percent of fruit drink sales is said to be within Kathmandu

valley alone, on the other hand brands like ‘Real’ and ‘Frujo’ are not

available yet outside the valley. Even the remaining brands like ‘Slice’

and ‘Rio’ are yet to penetrate some markets.

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Fruit drinks market is not yet mature enough as that of cola, as the

estimated growth rates for these products indicate. Consumption of

any product depends on the country’s overall economic condition and

also on the habit of the consumers. In the case of soft drinks, Nepali

consumers are more used to cola than to fruit drinks. The reasons are

numerous.

One is the price. Fruit drinks are one to four or five rupees costlier than

colas. Second, consumers seem to feel more comfortable with cola

than fruit drinks, because rumors of foreign objects found are more

frequent in packed fruit juices than in colas irrespective of the veracity

of such rumors.

Whatever the perception of consumers at present, there are still very

good opportunities for soft drinks especially fruit drinks industry to

expand in Nepal, because the average per capita consumption here of

non-alcoholic beverages is considered to be still very low. And if the

manufacturers of fruit drinks become aware of the tastes and pockets

of the consumers and maintain quality and availability of their

products, there is a very good chance of high growth in the volume

however tough the competition may be. Fruit drinks also have one

more advantage over cola, as the former can use the locally produced

fruits whereas colas are mainly concentrates that are imported. While

the opponents of consumerism may find strong logic against colas,

they may be supportive of fruit drinks. However, it is also a bitter fact

that fruit juices produced in Nepal are mostly from fruits that are

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imported. Perhaps it is because the industry is still not grown up

enough to encourage sufficient fruit production on commercial basis.

MAJOR PLAYERS

In India, the rising income levels have changed the consumption

pattern of the rich as well as not so rich. At one level, the lower

end of the middle class is busy emulating the eating habits of the

rich by laying greater stress on nourishment and quality while at

the other level, as choices increase, the upper end consumer is

getting more and more adventurous and experimenting his meal

portfolio.

In processed food sector, the inclination towards fruit juices

rather than food drinks mark the constant change in habits,

attitudes and needs in the country in the past couple of years.

While the food drinks market is growing at 10%, in comparison

the growth rate of juices and nectar sector is phenomenal 30%

(Source: Mckinsey Report). The reasons for changing trend are

not really hard to find. People at large, today, are definitely more

health and quality conscious. They are looking for additional

attributes (natural, nutrition etc.) in thirst-quenchers.

This, therefore, makes it imperative to give the Rs.2000 crore

fruit juice industry a closer inspection. The natural juices at the

roadside juicewallahs could never give consumers the full

satisfaction of assured quality and hygiene. The only other

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alternative was extracting juice pulp at home, which in itself is a

cumbersome process. Thus, was identified the need and hence

the market for Natural Fruit Juices.

An analysis of the players who call the shots…

ENKAY TEXOFOODS INDUSTRIES LTD.

Brands : Onjus, Life

Turnover : Rs.67 crores

For a traditional family run texturised yarn business, it was quite a

giant leap for Enkay to diversify into a completely unrelated - food

processing – business in the FMCG segment. ETL with know how from

Henschel Export GmbH of Germany, a Thyssen group company, set up

a plant to process guavas, mangoes and bananas into puree,

concentrate and later to juices. ETL is a company of international

repute having ISO 9002 certification and supplying processed fruits

and pulps to companies like Heinz, Pepsi, Nestle, Unilever, etc.

Launched in April 1997, Onjus, in its very first year commanded an

astounding 34% market share in the tetrapack juices segment. Rs.15

crores sales were amounted from Mumbai and Pune alone, its first

launch centres. With the help of Samsika Marketing Consultants, the

consultancy outfit advising Enkay Texofoods, Onjus today commands a

sales figure of Rs.20 crores.

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Onjus is the most successful brand of 1999 (Source : Business India).

And, this has encouraged the company to launch their second product,

Life, a mango-based beverage.

EXCELCIA FOODS LTD.

Brands : Real, Hommade, Capsico, Lemoneez

Turnover : Rs.10 crores

An equal equity joint-venture between Dabur India and Osem of Italy,

Excelcia Foods Ltd. is only about a year old. Its flagship company

Dabur India currently accounts Rs.810 crores turnover. It has eight

business divisions viz, Health Care, Personal Care, Pharmaceutical,

Ayurvedic, Bulk Drugs, Natural Gums, Food and Cosmetics.

Launched in June1996, Real went off-shelves for almost four months

owing to quality problems (stock returns of around 30%). Earlier Real

was being sourced from Himalayan Beverages, a Nepalese company.

For better control over supply, Dabur Nepal, a 100% Dabur India

subsidiary took over Himalayan Beverages. Dabur has also got into a

contract with the Himachal Pradesh government to use its packaging

facilities for an annual fee. In August 1998, Dabur India tied up with

Godrej Foods for the manufacture and packaging of its Real range of

fruit juices in tetrapacks.

Despite a headstart, Real failed to create a market of its own, let alone

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capture the market of tetrapacks like Frooti.

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REAL JUICE

More wholesome than fizzy drinks and moro hygienic than what

roadside vendors sell, to reteriete the launch spiel. Real Juice is sold

through 80,000 retail outlets in 240 cities of India. The brand name to

the product is assigned as synonym for naturally, as Real Juice

contains only fruit pulp and no other added flavour or colour.

Known for its packaged, preservative free fruit juices, Dabur Foods has

launched India’s 1st Cranberry juice – Real Cranberry Nectar in one-

litre packs for Rs 75 in the Indian fruit juice segment.

The juice- Real Cranberry- offers the exotic

flavour and nutritive value of cranberries, rich
in vitamins, minerals and antioxidants, which
makes it a healthy beverage, claims an official
release.

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The product will be offered in four metros - Delhi + NCR, Mumbai,

Kolkata and Chennai, mini-metros like Bangalore, Hyderabad, Pune,
Ahmedabad, Chandigarh and small cities like Ludhiana, Amritsar and
Jalandhar.

The release claims that Dabur Foods’ flagship brand, Real offers the
largest range of fruit juices, which are an assortment of traditional
Indian and International flavours – orange, mango, tomato, pineapple,
mixed fruit, grape, guava, litchi and cranberry.

Real Fruit Juice is a packaged, 100 per cent preservative free fruit juice
brand offering consumers the great taste and wholesome nutrition of
freshly squeezed juice in a hygienic and attractive pack. The product is
packaged in latest spin cap tetra pack, cold fill technology and spill-
proof double seal cap for packaging.

Real Fruit Juice is India’s first and only packaged Fruit Juice brand to
get SGS (Societe Generale de Surveillance) certifications for high
safety standards used in packaging that conform to the stringent
HACCP and GMP standards. The brand has also won the award for
‘Highest sales growth achieved by a brand’ in the non-dairy category,
at the sixth National dairy and Beverage Seminar – ‘Innovation for
Growth’.

Today Real Juice marks it's presence in the market with eight flavours-
Mango, Orange, Pine Apple, Mix and, Tomato.

Real Juice is available in four packings of 200 ml, 250 ml., 500ml. and
one litre with process ranging from Rs, 8.00 to Rs. 55.00 Real Juice is a
fresh, natural flavoured, squeezed from the choicest fruits, specially
hand-picked from the finest orchards in Nepal. They do not contain any
added flavour, or colour and come in India's first international
freshness sealed pour and store packs.

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PRODUCT PORTFOLIO
ORANGE JUICE

MANGO

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MIXED FRUIT JUICE

GRAPE JUICE

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TROPICANA
Tropicana works with more than 400 established Florida groves, which
are selected for sandy soil conditions and advanced irrigation
practices. The company is the largest single buyer of Florida fruit and
processes about 60 million boxes of fruit. Once the fruit is picked,
oranges are hand graded and any fruit that doesn’t meet quality
inspections is removed.
The oranges are then washed and the orange oil is extracted from the
peel to capture the from-the-orange taste, which are later blended into
the juice for consistent quality and flavor. The oranges are squeezed
and the fresh juice is flash pasteurized. Tropicana developed flash
pasteurization to minimize the time the orange juice is exposed to heat
while providing maximum nutrition and flavor.
Oranges have a limited growing season, and because there is demand
for juice year round, an unspecified quantity of juice (some or
potentially all) is deaerated and then stored for future packaging in
chilled tanks to preserve quality. The aseptic tanks protect the juice
from oxygen and light and hold the liquid at optimal temperatures just
above freezing to maintain nutrition. It has been reported that
deaerated juice no longer tastes like oranges, and must be
supplemented with flavor packs derived from orange oils before
consumption . Tropicana also uses small quantities of high-quality
orange juice from Brazil to supplement the Florida crop.
The oranges Tropicana uses for its juices have different ripening
seasons and juice stored in aseptic tanks has been stripped of its taste
– so some stored juice is blended with fresh juice and a bit of the
natural oils found in the orange peel and in the juice are blended in to

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deliver the most consistent tasting juice. Pulp may be blended in at

this point, too, depending on the product.
Tropicana’s carton and plastic packaging are engineered to maintain
quality and freshness. The company’s packaging materials ensure the
juice stays fresh inside the package by preventing outside moisture
and light from affecting its quality.

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4 Ps OF MARKETING
PRODUCT

The Facts:

Tropicana is a ‘100% natural orange juice’ in a tetrapack. It is made

from American Valencia oranges. The company claims that it tastes
like fresh orange and has a shelf life of six months; even an open pack
can be safely refrigerated for 3-4 days. Also that the product contains
no preservatives and is unsweetened. Unlike in the West where most
orange juice brands are yellow in colour, Indians perceive yellow as
being prineapple or sweetlime. At Onjus, to cut possible confusion,
oranges of right colour and taste were picked. Onjus is available in two
sizes – 250 ml and 1 litre. Recently it introduced a special ‘six pack’
consisting of six 250 ml packs.

The Real range of juices includes orange, apple, mango, pineapple and
mixed juices, as well as its vegetable variant, tomato. The product
contains no preservatives. It is available in both sweetened and
unsweetened form. Real fruit juices were available and packed in
Nepal in 500 ml and 1litre elopack. Only its apple juice was available in
small tetrapcks. To overcome this hinderance, Dabur India has tied up
with Godrej Foods which will pack the Real range of juices in small 200
ml tetrapacks.

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The Findings:

In terms of variety and flavours, Onjus can only boast of a single one –
orange. This in itself is a major drawback for the brand since it is
pitched against Real’s multiflavour variety. Also, Indians are known to
have a sweet tooth. However, Onjus unlike Real does not provide a
sweetened juice flavour. Real, keeping this in mind has ventured into
both the variety, the naturally sweet and the other artificially
sweetened; a big plus for the Real brand. Much as both the brands
refer themselves to as completely natural, recently there were
allegations of presence of synthetic food colour dyes (above the
permitted level). Though these allegations were pinned at Onjus; it
however highlights the urgency of implementing stringent quality
measures with regard juices. Steps also need to be taken to ensure
good juice quality after packaging. Perhaps keeping this in view Real
introduced ‘elopacks’. One big major drawback against Real is the
absence of small pack sizes. It is only available in 500ml and bigger
packs, making it less convenient for individual consumption (Pick it up
and have it).

Barring these differences, both the brands do not offer much in

difference. The contrast in sales figure between Onjus and Real
therefore seems much to be influenced by the other factors.

The other factors??

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PRICE

The Facts:

Prices in Rs.

BRAND FLAVOUR QUANTITY

200ml 250ml 500ml 1ltr.
Tropicana Orange - 12 - 44
Orange
(Sweetene
- - 23 42
d)
Orange
(Unsweete
- - 30 -
ned)
Real
Mango - - 30 -
Pineapple - - 30 -
Apple 9 - - -
Mixed - - 30 -
Tomato - - 25 -

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The Findings:

Inorder to create a market for Onjus, the key issue was to make it

affordable. Since it was fighting its battle not just against its

predecessor Real but also against the established Frooti etc., the price

had to be in a competitive range. Onjus was sensitively priced similar

to 250ml Yo Frooti packs. The introductory price of Rs. 9 per 250 ml

pack was safely within 10 Rs. , mental price barrier. The purpose of it

being to establish or even to create a market for its products.

Real, the multiflavoured brands, has put its different flavours under

different price tags keeping in mind the preferred taste of the Indian

consumer. Infact even the sweetened and the unsweetened orange

juice variety are priced differently. However, since Real is not available

in smaller packs the indian consumer has a mental block towards

Real’s prices.

Though not much different in prices, Onjus scores an edge over Real

since it can boast of economical packs available in small sizes. Taking

into account the price sensitivity of Indian consumer, Real launched its

festive carton of four 500ml packs (2 oranges, 1 mixed and 1 tomato)

priced at Rs. 90. On its part Onjus came out with a carton of six 250ml

packs with a slashed price tag of Rs. 57. Both the companies believe

that once the consumer try the brands at slashed prices, the brands

would gain peak sales year after year. However, both the companies

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fail to understand the simple truth that consumers in general are no

longer brand loyal and are always hunting for ‘value for money’.

Inorder to steal the show from aerated, non-alchoholic food drinks, it is

imperative that the companies try and increase profits by increasing

sales volume and reaching economies of scale and not by increasing

price tags.

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DISTRIBUTION

The Facts:

Tropicana is aimed at teenagers, young kids, wives, mothers and

busy executives. For the sole purpose of in-house consumption, 1 litre

Onjus packs were introduced. As a company policy, distribution

aspects is given precedence over promotional ones. As a result the

company spends more on strengthening its distribution network rather

than the promotional aspect. The management has spared no effort in

spreading its distribution from roadside vendors, dhabawallahs, local

grocery shops and to super markets. Export offers a major potential

for Onjus fruit juices. Nepal and Bhutan are among the few

neighbouring countries to which Onjus is already being exported.

Unlike Tropicana, Real is sparsely available. Positioned as an up-

market brands, it is available mostly in mid-up market outlets. The

absence of small, convenient packs makes Real less discrete in on-

premises outlets like college canteens and roadside stores.

Surprisingly, the already existing distribution channels of Dabur India

are not being utilised by Real to reach the general masses. To make

matters worse in-transit damages to the packs during carton handling

earned the brand a bad name initially. Thus, distribtuion and logistics

posed more of a problem than a solution to this brand.

The Findings:

Though both Onjus and Real have done well to elaborate their

consumer segment from kids, teenagers to young adults and family

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people, surprisingly the sales haven’t risen exponentially. Not available

makes one more desirable but not in case of a product. In today’s

buyer’s market, if one brand is not available the second would

conveniently take its place. Product differenciation and eventually

brand loyalty is continuously diminishing in the competitive market of

today. As a result services especially as that of distribution and

logistics gain crucial importance. Inspite of an early launch, Real could

not make its presence felt owing to slack distribution network. The

worse was that inspite of being a Dabur brand, it failed to utilise the

company’s existing distribution channels to its advantage. Real thus

got branded as a premium product and lost a major chunk of its

market share. Onjus on the other hand made adequate shelf presence

right from local shops to the big malls, eventually sizing up a huge

market for itself. However, to its credit Real took note of its in-transit

damages and came up with ‘elopack’.

Apart from getting its logistics right, Real would do well by not

restraining itself to the premium segment alone. Like its counterpart

Onjus, it needs to reach the popular segment, because it is they who

mark the substantial market.

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PROMOTION

The Facts:

Tropicana: ‘Squeeze to Please’

Onjus gives primary emphasis to print media as agianst the electronic

one. The product, and not the company brand is highlighted.

Positioned as a thirst-quencher, inorder to clinch greatger market

share the company is trying to promote Onjus not just as a beverage

but also as breakfast, meal compliment or a mix with vodka. The

promotion never fails to underplay the fact that they are made of the

finest Valencia oranges from America, posed as naturally rich in

Vitamin C with no preservatives. The company recently introduced a

‘six pack’ carton priced at Rs. 57, to communicate it as that ideal for

small families and/or as a gift pack. Equipped with Rs. 1 crore

advertising budget, the promotional material for Onjus is meant for the

‘label literate’. The packs come with tamper proof, hygienecally packed

adjustable straws.

Real: ‘ Do you believe in real love? There’s nothing artificial about it’.

The essence of Real’s promotional work is ‘real’. To the upmarket

housewife, it is posed as a convenient pack full of nutritional value.

Though considered as a premium product, because of its price

competitiveness, it is being pitched against roadside juicewallahs.

‘Compeletely hygenic’ and ‘value for money’ are the messages being

sent across. Real, barring a few advertising spots, has not really

advertised much. But all this is set to change this year with an

advertising budget of about Rs. 1 crore. Strategy is being worked out

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with door-to-door sales and sample promos. To add variety, Real now

even comes in blue packs equipped with screw back-ups.

The Findings:

When a company faces stiff competition from the other, it is but

impossible for the company to disregard promotion. Advertising seems

a forelong marketing variable in the agenda of both Onjus and Real, a

fact admitted by both the companies. Especially on electronic media,

the companies have failed to leave a mark on the consumers. While

comparing the promotional efforts it is evident that Onjus is busy

projecting itself as young, enthusiastic, fun-loving product while Real

poses a much sedate, premium image. The packaging in itself speaks a

lot about the consumers being targetted by the respective companies.

There being negligible difference in both brand’s advertising budgets,

yet Onjus has made its presence felt as against Real. This is not simply

due to the presence of physical product itself but also because of its

promotional material, in the form of outdoors at every nook and

corner. Real has also been complacent with regards to point-of –

purchase displays, thereby killing the impulse buy decisions.

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CONCLUSION

Can a company whose business for decades has been spinning yarn

create a successful brand out of a fruit juice overnight ? Yes, would

say the patrons of Real. After 13 years of staying lonely at the top

would Real be able to build a crowd around Parle Agro’s Frooti. Well

yes, and no. Frooti is still unchallenged as a fruit drink. But what Real

attempted was to create a market of its own - the market of fresh

fruit juices. This low volume, high growth industry sprang into

existence three years back and yet the enormous growth potential it

showed during this time has enticed many new entrants - both Indian

and foreign players . Much has already been achieved and much is yet

to be. The market is ever expanding ; just that what marketers have

been trying to sell earlier was often peripheral to the basic Indian diet.

As a result, these products never got beyond the novelty sales level.

What the Indian market needs today - to get anywhere close to the

consumers paradise - is at least a dozen such marketers who would

balance superior technology with consumer needs; whichever part of

the globe they originate from.

Price is a barrier to this category because when you give fresh juice,

packaging becomes critical. So, what the industry is now trying to do is

offer different packaging to suit different price points while

simultaneously working on ways to offer better quality and improved

taste.

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With the market growing at a healthy rate and with changing lifestyles

and rising levels of health consciousness among consumers today, the

demand for healthier products like packaged fruit juice is only going to

increase in the times to come.

Dabur will be a Rs 200-crore company by 2006-07. And a large chunk

of this growth will come from the Real brand of fruit juices, since Real

contributes as much as 85 per cent to the company's topline. It will

continue to be an area of focus.

It took Dabur Foods seven years to make money on fruit juices, thanks

to product innovation, expanding market and increased consumer

preference for healthy foods. But even as the industry players are

upbeat about growth prospects, there is an undercurrent of

discomfiture, with talk of the new government thinking of levying eight

per cent excise on food products including packaged fruit juice. So,

while profit projections are unlikely to go completely haywire just yet,

there might have to be some readjustments in the time frame within

which these targets may be achieved.

If everything goes the way it should, by the year 2007 the juice

industry would contribute as much if not more to the beverages

industry as aerated drinks today.

A fresh respite it would be ...

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RECOMMENDATIONS

• To promote the product range good consideration should be made

to wholesalers and retailers.

• To maintain the profit margin logistic mix should be adopted by the

company

• The price can be brought down by cutting the manufacturing cost.

• The distribution channel should be widened and made more cost-

effective.

• More advertisements be placed on TV and Radio.

• In order to attract more attention of potential customers any

celebrity can be endorsed.

• More flavour can be added to the product line.

• Some sales promotional campaigns may be undertaken involving

retailers and customers to push the product.

• More hoardings and OTC displays may be placed in order to

increase awareness level.

• Pack may be made more attractive.

• Consistency of the quality is necessary.

• More retailers and consumer based schemes should be introduced

and special emphasis should be given children based schemes,
because children mainly consume the fruit juices.

• As a researcher, I observed that for making the distribution channel

smooth transfer of goods, the contribution of middlemen is
required.

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BIBLIOGRAPHY

Still, Cundiff, Govoni, Sales Management – Decisions, Strategies and Cases, 2006

Business Today, 15th September Issue, 2008.

Economic Times

• The Strategist, Business Standard

• Financial Express

• Business Line

Handbook of Analysis and Quality Control

• A&M

• www.indiatelevision.com

• www.daburfoods.com

• www.agencyfaqs.com

• www.domain-b.com

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